JPMorgan says tablets to grow into $35 billion market by 2012

(Reuters) - JPMorgan Securities expects tablets to evolve into a $35 billion market by 2012, eating into the share of PCs, and competition to drive down premium prices.

The brokerage, which nudged up its forecast for tablet unit shipment and revenue, sees steep adoption rate and increasing number of available devices driving tablet market growth.

It sees tablet market growth spurred by improved operating system platforms and penetration of enterprise and education customer verticals.

“We expect tablets to have an increasingly negative impact on PC shipments,” analyst Mark Moskowitz said. “More than 35 percent of tablets sold in 2012 will be cannibalistic, particularly as relates to netbooks and notebooks,” he said.